Pandas Weekly Newsletter 8/6

Every week we review everything you need to know about the stock market for the week ahead as an active or passive trader.

Market Big Picture & Long-Term Technicals

In last weeks newsletter we discussed 4600 and 4527 on SPX being key pivot points into a busy week. The market broke 4527 and sold into 4489 support and closed below. Now that we’ve started a stronger pullback in the market, we want to see how bounce react. If bounces continue to be sold, we will continue to follow the trend into larger support near 4400-4325 on the weekly. This dip is likely to carve out a new base below 4600 that will likely lead to a strong break out back toward all time highs sometime later this year. With increased volatility also comes increased uncertainty and noise. As always, we will trade each day individually from the next (as day traders) and take what the market gives us. This has proven to be an effective mindset that has gotten us through many varying market environments.

Economic Calendar & Earnings

source: (investing.com)

Notable Earnings: PLTR 0.00%↑ RIVN 0.00%↑ UPS 0.00%↑ LLY 0.00%↑ DIS 0.00%↑ BABA 0.00%↑ DDOG 0.00%↑ TTD 0.00%↑ TWLO 0.00%↑ UPST 0.00%↑

Near Term Outlook & Trade Plan

SPX 4527 targets 4555, 4578

SPX 4467 - 4527 = chop zone

SPX 4467 targets 4450, 4420

Pandas Weekly Watchlist

Our Favorite Trade Setup - SPY under 446.27

Contract: SPY 8/8 445p

Targets: 445, 442.98, 440

Stop: 448.40 using 15m candle

Notes: SPY 0.00%↑ is a good way to keep things simple this week and is set up nicely for continuation under Fridays lows as it managed to close under the 447 level. If 447 is reclaimed then it’s possible to see a bounce first, otherwise 443 can come next.

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